Call US for Rs 2 a min

In what could lead to a tariff war in the ISD market, Reliance Communications announced that it was slashing international call rates on a global call card from India to the US and Canada by over 56 per cent to Rs 1.99 per minute, the lowest ISD rate to these countries. Consumers earlier paid Rs 4.50 a minute.

In response to the Reliance move, a Bharti Airtel spokesperson stated that while it did not comment on tariffs of competitors, it is considering "suitable options".

Making the announcement, S P Shukla, president, personal business, Reliance Communications' said, "We are very happy to offer this revolutionary rate of just Rs 1.99 which is lower than even the STD rates of most operators. Now, Reliance subscribers will be able to keep in touch with their business associates or friends and relatives in the US and Canada without having to worry about costs. We at Reliance are pleased to enable this change using our strength as a truly integrated telecommunications services operator."

Reliance global cards are available in various denominations from Rs 115 to Rs 1,900.

Bharti Airtel charges Rs 3.50 while Hutch charges Rs 3.99 on a calling card to the US and Canada, while MTNL charges Rs 6.00 on its pre-paid and post-paid services. Bharti Airtel and Hutch charge Rs 6.40 per minute on the mobilephone network.

Industry experts say the tariff offer would virtually kill the grey market and also the necessity of customers using net telephony, which is of course not of the same quality.